South Carolina Personal Lines Practice Exam

What designation is given to the HO-4 form?

1. Broad Form

2. Special Form

3. Contents Broad Form

4. Basic Form

The correct answer is: Contents Broad Form

The designation given to the HO-4 form is indeed referred to as the Contents Broad Form. This type of homeowners' insurance policy is specifically designed for renters and provides coverage primarily for the personal property of tenants. It does not cover the structure itself, as that responsibility falls on the landlord's insurance. The Contents Broad Form distinguishes itself by covering loss or damage to personal belongings caused by a range of named perils, such as fire, theft, and vandalism. This comprehensive nature is pivotal for tenants, as it protects their individual possessions within a rented space. In contrast, other forms like Broad Form, Special Form, and Basic Form pertain to different types of coverage suitable for homeowners, rather than for renters. The HO-4, focusing on the contents alone, is unique and essential for individuals who do not own the property they reside in but still need to ensure their personal items are secured.